EU: The European Commission issues a release on the new VAT rules

28/06/2021 The EU issued an official release on the enforcement of the new EU VAT rules that came into force this July. 

 

“New Value-Added Tax (VAT) rules for online shopping enter into force later this week as part of efforts to ensure a more level playing field for all businesses, to simplify cross-border e-commerce, and to introduce greater transparency for EU shoppers when it comes to pricing and consumer choice.”

 

In the release, the main summary of the EU eCommerce VAT package is also mentioned along with the unification of the VAT thresholds and the abolishment of the exemption of low-value consignments arriving in the EU from sellers established abroad.

 

At the same time the release mentions the advantages and reasons behind these changes “Rather than grappling with complicated procedures in other countries, they (sellers) can register in their own Member State and in their own language. Once registered, the online retailer can notify and pay VAT in the One-Stop Shop”

 

Finally, a short VAT history background is provided as the EU VAT rules were last updated long before the digital age in 1993 and as eCommerce boomed during the last 20 years, retail has transformed across the world, and for this reason, the rules needed to be updated as well.

 

You can read the full release here: EU press release 

 

Source: ec.europa.eu

 

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